Bankruptcy can be a difficult process, both emotionally and financially. If you are going through a bankruptcy in michigan there are several things that you will want to keep in mind. First of all, it is important to keep in mind that no one is immune to the financial problems that can lead to bankruptcy; did you know that even wealthy sports franchises can go bankrupt? The Pittsburgh Penguins actually filed for bankruptcy twice, in 1975 and in 1998. And furthermore, bankruptcy is often not the product of fiscal irresponsibility, but rather is often caused by financial catastrophe such as prolonged unemployment.
If you are wondering what happens when you file bankruptcy, do note that before filing for bankruptcy, most debtors are required to undergo credit counseling. Certain kinds of debts, including alimony and child support debts, student loan debts and debts incurred as a result of fraud cannot be discharged under bankruptcy. And if you are wondering what happens when you file bankruptcy, it also important to note that there are several different forms of bankruptcy in michigan, such as a chapter 13 bankruptcy and a chapter 7 bankruptcy. 84 percent of Michigan bankruptcy filings for the year 2011 were Chapter 7 filings, while 16 percent of Michigan bankruptcy filings for the year 2011 were Chapter 13 filings.
Additionally, if you are wondering what happens when you file bankruptcy it is important to note that after a bankruptcy filing, a debtor’s credit rating will suffer; chances are, however, that the financial circumstances that led to bankruptcy will have already negatively affected the credit rating. And there is a future after bankruptcy. With careful planning and financial management, it is possible to rebuild your credit after bankruptcy.